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e. When price is lowered, there is more demand than supply. That is, consumers will want to take advantage of lower prices and will buy more. On the contrary, producers will get discouraged and produce less or divert their resources to a more profitable venture. Thus, when demand exceeds supply, producers are unable (or unwilling) to supply the quantity demanded. In other words, this situation will result in shortage. The shortage will last till market efficiency restores the price to its equilibrium once again.
f. "Invisible hand" here refers to market efficiency that will eliminate the shortage and restore market equilibrium. This is how the self-correction process takes place: When there is shortage, it means that, at a lower price, there is more demand than supply. Producers will want to cash in on this situation, so they will increase their profit margin and charge more price from the consumers. This will exert an upward pressure on price. That is, price will start increasing and this will motivate the producers to increase their production. At the same time, the increasing price will also discourage consumers from buying more. In other words, increasing prices will lead to an increase in the quantity supplied and decrease in the quantity demanded. As a result, shortage will decrease to a point where quantity demanded equals quantity supplied. That is when equilibrium is restored. Market will be in equilibrium again.
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wanna check final answer I already did it
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